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Determine the rate of return of investment

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Problem - Rate of return on investment - The Walt Disney Company has four profitable business segments, described as follows:

Media Networks: The ABC television and radio network, The Disney Channel, ESPN, A&E, E!, and Disney.com.

Parks and Resorts: Walt Disney World Resort, Disneyland, Disney Cruise Line, and other resort properties.

Studio Entertainment: Walt Disney Pictures, Touchstone Pictures, Hollywood Pictures, Miramax Films, and Buena Vista Theatrical Productions.

Consumer Products: Character merchandising, Disney stores, books, and magazines.

Disney recently reported sector income from operations, revenue, and invested assets (in millions) as follows:

 

Income from Operations

Revenue

Invested Assets

Media Networks

$4,765

$16,209

$26,936

Parks and Resorts

1,418

10,667

16,945

Studio Entertainment

175

6,136

11,104

Consumer Products

609

2,425

1,278

Required -

a. Use the DuPont formula to determine the rate of return of investment for the four Disney sectors. Round whole percents to one decimal place and investment turnover to two decimal places.

b. How do the four sectors differ in the profit margin, investment turnover, and return on investment?

Reference no: EM132687299

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